How Much Is The Typical Referral Fee? Was This A Referral?
If I place a buyer and seller together, how much percent should a referral fee be? I found out all of the information and everything and passed it on to a potential buyer that seems really interested in the house. Is this still even a referral or can I make more because of the work I put into finding the information to make their lives easier? Please help
I think the going rate is $500-1000. What kind of information did you get? Did you go to the county courthouse? Did you find out the type of loan the seller has? Did you find out what kind of sale options the seller might be willing to consider? This is the kind of stuff that a referral fee would be based on. If you just found a seller and their asking price, you should probably expect the lower end of the scale. If you did the due diligence the buyer would have had to do, then you should expect the upper end of the scale.
Just my opinion,
Robert
[addsig]
I agree with robertt that it depends on what information you supplied the investor. Your fee will depend largely on how much information you provide. It also depends on how far along, experience wise, you are. The larger percentage fees come when you can get the property under contract and then assign your contract to an investor that has the resources to do the deal. Good Luck.
Dave
[addsig]
In oregon unless you get it under contract and peddle it you are at the buyers mercy of any $$.
IT is against the law to pay a referral fee to any one other than a licensed broker.
[addsig]
Nice creative deal,
I have done many a such deal, my referral fee is normally based upon the equity position and my normal fee is 25% of the equity.
I only do this type of deal by placing the subject property in a land trust and at this point I name the owner, buyer and my self as beneficial interest in the trust.
Let me give you an example:
Market value is $100,000
Buyer buys for lets say $95,000
Leaving $5,000 in equity
My beneficial interest would be $1,250
The seller's beneficial interest would be $93,750
Buyer's beneficial interest would be the purchase of $95,000 and the $5,000 equity.